1、Chapter 10 New-Product Development and Product Life-Cycle Strategies4. A company can obtain new products through new-product development. Which of the following define(s) new products? a. original products b. product improvements c. product modification d. all of the above (d; Moderate) 9. Your comp
2、any decides to use internal sources for developing new-product ideas. Which of the following would not be a common internal source? a. questioning executives and professionals b. company records and data c. encouraging intrapreneurism d. privileged information (d; Moderate)15. Top management can ins
3、tall a(n) _ to direct the flow of new ideas to a central point where they can be collected, reviewed, and evaluated. a. idea evaluation system b. idea management system c. database d. MIS (b; Moderate)20. JoAnn Fabrics, Inc. has just created a new combination of colors and fabric types. The firm wan
4、ts to be sure of the way consumers perceive an actual or potential product called product _. a. idea b. concept c. image d. proposal (c; Moderate)24. Many firms routinely test new-product concepts with consumers before attempting to _. a. commercialize them b. turn them into actual new products c. p
5、rice them d. create advertising and promotion (b; Moderate) 25. After concept testing, a firm would engage in this stage in developing and marketing a new product. a. idea screening b. marketing strategy development c. business analysis d. product development (b; Challenging) 27. The second part of
6、the marketing strategy statement outlines the products planned price, distribution, and _ for the first year. a. advertising b. promotion c. marketing budget d. positioning (c; Challenging)31. New World Releases is conducting a business analysis to determine which of the many new songs available to
7、management should be released. Sales must be first estimated before costs can be estimated. Which of the following did your text recommend for forecasting sales? a. compare the sales history of similar products b. conduct surveys of market opinions c compare the sales history of similar products and
8、 conduct surveys of market opinions d. any of the above (c; Challenging) 34. Wainwright Industries has built a new prototype riding lawnmower especially for women. Joe Wainwright and his staff have incorporated the functional features and must now convey the _. a. image b. advertising c. safety feat
9、ures d. intended psychological characteristics (d; Challenging)40. When using test marketing, consumer products companies usually choose one of three approaches standard test markets, controlled test markets, or _. a. blind tests b. random sample test markets c. simulated test markets d. nonstandard
10、 test markets (c; Challenging)42. When using standard test markets, which of the following would not be used to gauge product performance? a. full marketing campaign b. store audits c. consumer and distributor surveys d. sales force composite (d; Challenging)44. Test marketing can be sabotaged by co
11、mpetition that may alter accurate results. One of these is not a common way for them to accomplish this. a. cut prices in test cities b. increase their promotion c. run counter ads in the media d. buy up the product being tested (c; Challenging)60. Atlas Steel Corporation lacks the confidence, capit
12、al, and capacity to launch its new steel product into full national or international distribution. Even though test market results look promising, what will be managements next step? a. retest the product in additional markets b. develop a planned market rollout over time c. secure a loan to provide
13、 the confidence, capital, and capacity d. seek the help of a nationally known consultant (b; Challenging)64. Layne Imports is faced with the two major pressing concerns that all companies in all industries face when it comes to organizing for new-product development. a. speed to market and developme
14、nt costs b. speed to market and reducing new-product development cycle time c. reducing new-product development cycle time and costs d. rising costs of production and distribution (b; Challenging)68. It is typical for top management to give the product development team general strategic directions b
15、ut no _ or _. a. clear-cut product idea; resource limitation b. clear-cut product idea; work plan c. work plan; budget d. freedom limitations; budget restraints (b; Challenging) 75. One of the following cannot be described by the PLC concept. It is not so obvious. a. product class b. product form c.
16、 product image d. brand (c; Moderate)78. The PLC concept can be applied by marketers as a useful framework for describing how _. a. to forecast product performance b. to develop marketing strategies c. products and markets work d. the PLC curve will shape up (c; Challenging)85. At some point between
17、 maturity and decline, a company or business can attempt to raise the PLC curve or give it new life by using one of the following techniques. a. find new global markets b. increase the advertising budget c. increase free samples as incentives to buy d. find new uses and users (d; Moderate)Essay 123.
18、 Given the rapid changes in consumer tastes, technology, and competition, companies must develop a steady stream of new products and services. Briefly explain the common ways of accomplishing this. One way to develop new products and services is through acquisition by buying a whole company, a paten
19、t, or a license to produce someone elses product. The other way is through new-product development in the companys own research and development department. (Easy; p.255) 124. Explain why so many new products fail and provide some ideas for a company to improve its odds of new-product success. Althou
20、gh an idea may be good, the market size may have been overestimated. The actual product was not designed as well as it should have been. It may have been incorrectly positioned in the market, priced too high, or advertised poorly. A high-level executive may push a favorite idea despite poor marketin
21、g research findings. Sometimes the costs of product development are higher than expected and sometimes competitors fight back harder than expected. One way to improve the odds is to identify successful new products and find out what they have in common. Another is to study new-product features to se
22、e what lessons can be learned. A company must understand its customers, markets, and competitors, and develop superior value to customers. (Challenging; p. 255) 125. Briefly describe the steps in the new-product development process. New-product development starts with idea generation from internal a
23、nd/or external sources. Next, the ideas must be reduced through idea screening. Once the new ideas are decided upon, the product concept must be developed and tested. A marketing strategy must be developed to introduce the product to the market. Once the product concept and marketing strategy are ch
24、osen, a business analysis is conducted to review the sales, costs, and profit projections to see if they will satisfy the companys objectives. A prototype, or working model, will next be created in the product development stage. Test marketing will follow where the new product and its marketing prog
25、ram will be introduced into more realistic market settings. The last step is to launch or not launch the new product. If the company decides to launch the product, it will go ahead with the commercialization stage and later test its sales and profit results. (Challenging; p. 255-263)126. Provide the
26、 major sources of external new-product ideas and explain why these sources offer advantages over internal sources. The major sources of new-product ideas from external sources include customers, suppliers/distributors, competitors, and research firms. These sources are closer to the market and tend
27、to reflect current tastes and preferences. Firms can better match their product offerings to customer needs and wants. Consumers often create new products and services on their own. Some companies even give customers the tools and resources to design their own products. (Moderate; p. 256-257) 127. W
28、hat are the two advantages of an idea management system for developing new products? Provide five ideas for a company to use to accomplish a successful system. An idea management system helps create an innovation-oriented company culture. It shows that top management supports, encourages, and reward
29、s innovation. It will yield a larger number of ideas among which will be found some especially good ones. As the system matures, ideas will flow more freely. The company can do the following: Appoint a respected senior person to be the companys idea manager. Create a cross-functional idea management
30、 committee with people from each department. Set up a toll-free number or Web site for anyone who wants to send a new idea to the idea manager. Encourage all company stakeholders to send their ideas to the idea manager. Set up formal recognition programs to reward those who contribute the best new i
31、deas. (Challenging; p. 257) 128. When a new product passes functional and consumer tests, the next step is test marketing. The amount of test marketing needed varies with each new product. Provide the advantages for each of the three test market methods. Standard test markets are the most widely use
32、d approach for major in-market testing. They have been proved over time to be basically reliable. Controlled test markets usually cost less than standard test markets and take less time to conduct. Simulated test markets usually cost much less, can be run in eight weeks, and keep the product out of
33、the competitors view. (Easy; p. 261-262) 129. Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the PLC. Product development begins when the company finds and develops a new-product idea. Sales are zero and the companys inv
34、estment costs mount. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of sl
35、owdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. Decline is the period when sales fall off and profits drop. (Challenging; p.264-266) 130. Your a
36、ssignment is to prepare a presentation about the applications of the PLC to as many of your companys operations as possible. What would you include? The PLC can be applied to new products and services. It also applies to a product class, a product form, or a brand. The PLC concept lends itself to styles, fashions, and fads. The concept can be used as a useful framework for describing how products and markets work, as well as developing marketing strategy. (Moderate; p.266)
